As I have said many times: Keep one's eye on the (Rothschilds') Birdie
I am indebted to you for bringing forward that commentary, Lorne! I found this jewel more than fascinating, on that same URL you proferred, and posted on 9/27. Any idea who this sanguine commentator is? I'd really be interested to know.
While repeating the mistake that others have made, prematurely calling Bretton-Woods dead, simply because the Buck is floating as opposed to fixed against other currencies, this is still a good piece. I'm here to re-remind all who read these penned lines, that those on Nixon's watch who went to floating exchange rates may have scrapped that PORTION of Bretton Woods Currency Accord, BUT...
and it is a BIG BUT...
The B-WCA is the source document, the genesis, the blueprint for the birth of the EMU and later the AMU still to come.
I, too, noted Tuesday that COMEX had NOT gone into backwardation. But, since I adopted many many moons ago the posture of 'watching' and emulating the "A" group in this world, that I'd stay out of financial trouble, my eye AND MY MONEY is STILL on the Golden Rothschilds' Birdie!!! Long Live the BIS blessed, US sanctioned ECB! FURTHERMORE, since it is well known that He Who Has The Gold, Makes The Rules, I'm delighted to see hardmoney, GOLD, win this round. The outcome is NOT in doubt in my mind. JY 300+ to the Dollar, here we come! BLESS Y2K Bug: it's only going to exacerbate it!YEEEEEEEHAW
<snip>
September 27, 1999. Shades of de Gaulle: The New, New World of Gold
By its stunning announcement Sunday evening, the new European Central Bank served
notice that it will not tolerate politically motivated Anglo-American interference in the gold
market, and that the Bank of England is now on probation as the central bank with
principal responsibility for overseeing this important market. The details of the
announcement have received full coverage by the financial press and wire services. Only
time will reveal its full significance. But what already seems clear is that not since Charles
de Gaulle and the Banque de France mounted the Franco-American gold war in the
1960's has a European central bank so directly confronted Anglo-American hegemony
over the international monetary system. And this time it is not merely a European central
bank, but the European Central Bank.
The classical international gold standard became an unintended casualty of the First
World War. Ever since, first the British and then the Americans have essentially dictated
the basic features of the world monetary system: the gold exchange standard after World
War I, Bretton Woods after World War II, and floating rates after Viet Nam. Each time
the new system finally led to an unprecedented credit expansion and an equally
unprecedented bull market in stocks. But the process of unwinding the great bull markets
of the 1920's and the 1960's brought down the very international monetary systems that
spawned them. The final outcome of floating exchange rates and the great bull market of
the 1990's is yet to be written. However, the advent of the Euro was intended to make
Europe what perhaps no single European country could be: a necessary player in any
future fundamental restructuring of the international monetary system.
For now, the gold market itself may provide sufficient fireworks. One-year lease rates
today hit 4.7% as existing shorts scrambled to secure adequate borrowings. Under the
circumstances, the odds for one or more high visibility failures or defaults cannot be
insignificant. In the longer run, Sunday's announcement by the ECB may be just the first
shot in a far larger battle for long overdue and much-needed reform of the world's
monetary system. But in any event, it is a reminder that what General de Gaulle termed
"an exorbitant privilege" -- the dollar's key currency status -- cannot be maintained
indefinitely by a policy of trashing gold.
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